The relevant legislation
7Section 5(2)(b)(iii) of the Jurisdiction of Courts (Cross-Vesting) Act 1987 ("the Cross-vesting Act" ) reads:
"5 Transfer of proceedings
...
(2) Where:
...
(b) it appears to the ... court that:
...
(iii) it is otherwise in the interests of justice that the relevant proceedings be determined by the Supreme Court of another State or of a Territory;
the ... court shall transfer the relevant proceeding to that other Supreme Court."
8Section 8(1)(b) of the Cross-vesting Act reads:
"8 (1) Where:
...
(b) it appears to the Supreme Court that:
(i) the relevant proceeding arises out of, or is related to, another proceeding pending in the Federal Court, the Family Court or the Supreme Court of another State or of a Territory and, if an order is made under this subsection in relation to the relevant proceeding, there would be grounds on which that other proceeding could be transferred to the Supreme Court, or
(ii) an order should be made under this subsection in relation to the relevant proceeding so that consideration can be given to whether the relevant proceeding should be transferred to another court,
the Supreme Court may, on the application of a party to the relevant proceeding or of its own motion, make an order removing the relevant proceeding to the Supreme Court."
9The parties referred to Spiliada Maritime Corp v Cansulex Limited [1987] 1 AC 460 at 478 per Lord Goff; Bankinvest AG v Seabrook (1988) 14 NSWLR 711; James Hardie & Coy Pty Ltd v Barry [2000] NSWCA 353 at [100]; Hayward v Barratt [2000] NSWSC 708; BHP v Schultz (2004) 79 ALJR 348 [163] - [165]; James Hardie v Barry [2000] NSWCA 353; Amaca Pty Ltd v Harris [2005] NSWSC 622; B I (Contracting) Pty Limited v Haylock [2005] NSWSC 592 at [45]; Stavar v Caltex Refineries (NSW) Pty Ltd [2008] NSWDDT 22 at [115]; Valceski v Valceski (2007) 70 NSWLR 36 and Amaca Pty Limited v Delice Matthews NSWSC, 11 February 2011 Garling J.
10The starting point, I think is Spiliada Maritime Corp v Cansulex Limited. In Spiliada , Lord Goff endorsed a formula earlier used by Lord Keith of Kinkel in the resolution of the problems arising in the Abidin Daver. This was to the effect that the 'more appropriate' forum was the 'natural forum' for the trial of the action. This was described as being 'that forum with which the action had the most real and substantial connection'. In judging the action by reference to such a criterion, Lord Goff said that courts would first look to the 'connecting factors' that point in the direction of the local or some other forum (at 478):
"These will include not only factors affecting convenience or expense (such as availability of witnesses), but also other factors such as the law governing the relevant transaction ... and the places where the parties respectively reside or carry on business."
11Mason P cited the decision of Lord Bingham in Lubbe v Cape Plc [2000] All ER 268, which referred to this passage with approval (emphasis added):
"[91] t may well be that the difference between the " Spiliada " approach and the " Oceanic Sun Line " approach is not as great as perceived at the time when Bankinvest was decided. I am not suggesting that there is no difference. However, cases such as Connolly v RTZ Corp Plc [1998] AC 854 and Lubbe v Cape Plc [2000] 1 WLR 1545 show that a stay based on forum non conveniens involves much more than deciding which is the more "natural" or appropriate forum. Thus, in Lubbe , Lord Bingham of Cornhill said (at 1554) that:
... it is the interest of all the parties, not those of the plaintiff only or the defendant only, and the ends of justice as judged by the court on all the facts of the case before it, which must control the decision of the court. In Spiliada it was stated (at p476):
"The basic principle is that a stay will only be granted on the ground of forum non conveniens where the court is satisfied that there is some other available forum, having competent jurisdiction, which is the appropriate forum for the trial of the action, ie in which the case may be tried more suitably for the interests of all the parties and the ends of justice."
In applying this principle the court's first task is to consider whether the defendant who seeks a stay is able to discharge the burden resting upon him not just to show that England is not the natural or appropriate forum for the trial but to establish that there is another available forum which is clearly or distinctly more appropriate than the English forum. In this way, proper regard is had to the fact that jurisdiction has been founded in England as of right ( Spiliada , p477). At this first stage of the inquiry the court will consider what factors there are which point in the direction of another forum ( Spiliada , p477; Connelly v RTZ Corp Plc [1998] AC 854 at 871). If the court concludes at that stage that there is no other available forum which is clearly more appropriate for the trial of the action, that is likely to be the end of the matter. But if the court concludes at that stage that there is some other available forum which prima facie is more appropriate for the trial of the action it will ordinarily grant a stay unless the plaintiff can show that there are circumstances by reason of which justice requires that a stay should nevertheless not be granted. In this second stage the court will concentrate its attention not only on factors connecting the proceedings with the foreign or the English forum ( Spiliada , p478; Connelly, p872) but on whether the plaintiff will obtain justice in the foreign jurisdiction. The plaintiff will not ordinarily discharge the burden lying upon him by showing that he will enjoy procedural advantages, or a higher scale of damages or more generous rules of limitation if he sues in England; generally speaking, the plaintiff must take a foreign forum as he finds it, even if it is in some respects less advantageous to him than the English forum ( Spiliada , p482; Connelly, p872). It is only if the plaintiff can establish that substantial justice will not be done in the appropriate forum that a stay will be refused ( Spiliada , p482; Connelly, p873).
See also Lord Hope of Craighead at 1566-1567.
[92] Lubbe's Case considered the relevance of a plaintiff's inability to obtain legal aid in the "natural" forum. Such an issue barely intruded into the present case which rose no higher than showing that the plaintiff was able to obtain a satisfactory contingency fee arrangement in New South Wales.
[93] Lubbe also emphasises (at 1561, 1566-1567) that forum non conveniens is not concerned with overcrowding in the forum court (see also Oceanic Sun Line at 255, Grigor). Rather, the focus must be the "private interests of any of the parties" and "the ends of justice in the case which is before the court" (per Lord Hope at 1566).
[94] This approach to Spiliada fits comfortably with the more recent caselaw applying and developing Bankinvest ."
12In BHP v Schultz , Kirby J said (citations omitted):
"[163] In Spiliada Lord Goff endorsed a formula earlier used by Lord Keith of Kinkel in the resolution of the problems arising in The Abidin Daver . This was to the effect that "more appropriate" forum was the "natural forum" for the trial of the action. This was described as being "that with which the action had the most real and substantial connection". In judging the action by reference to such a criterion, Lord Goff said that courts would first look to the "connecting factors" that point in the direction of the local or some other forum:
'These will include not only factors affecting convenience or expense (such as availability of witnesses), but also other factors such as the law governing the relevant transaction ... and the places where the parties respectively reside or carry on business.'
[164] Once it is clear that some "more appropriate" forum exists, "the plaintiff will have to take that forum as he finds it, even if it is in certain respects less advantageous to him than the [chosen] forum". So too for the defendant. An exception is allowed where it is clear that "substantial justice" cannot be done to the plaintiff in what is otherwise the "appropriate" forum. However, whilst this may be a consideration that it is appropriate to take into account in inconvenient forum applications which seek orders that the proceedings be continued in another country, they scarcely apply to courts within the Australian Commonwealth. On the contrary, the suggestion that the first respondent could not obtain "substantial justice" in the relevant court of South Australia (the Supreme Court of that State) is not only contrary to common experience. It is inconsistent with the hypothesis of the Constitution.
[165] I therefore agree with the remarks of Spigelman CJ in James Hardie & Coy Pty Ltd v Barry :
'To determine which court is, in the interests of justice, the appropriate court, it is necessary to inquire, in the case of a tort, as to what is the place of the tort. Indeed, in the context of administering the co-operative national scheme in the Jurisdiction of Courts (Cross-vesting) Act, where the place of the tort and the residence of the parties coincide, this will generally be determinative of the issue of 'appropriate court', although other factors may need to be assessed in the process of determining where the interests of justice lie.'"
13The first case after the cross-vesting legislation came into existence in this Court, was Bankinvest AG v Seabrook at 713 to 714 Street CJ said:
'The cross-vesting legislation passed by the Commonwealth, the States and the Territories both conferred on each of the ten courts Australia-wide jurisdiction and set up the mechanism regulating the transferring of proceedings from one of these ten courts to another. In relation to transfer, the common policy reflected in each of the individual enactments is that there must be a judicial determination by the court in which proceedings are commenced either to transfer or not to transfer the proceedings to one of the other nine based, broadly speaking, upon consideration of the interests of justice. ... It calls for what I might describe as a "nuts and bolts" management decision as to which court, in the pursuit of the interests of justice, is the more appropriate to hear and determine the substantive dispute.'
14Young J (as he then was) in Hayward v Barratt said the decision in Bankinvest meant the Court should "...undertake a case management exercise to see what would be the best order to make to facilitate the trial of the litigation". The concept of 'the interests of justice' depends on the facts and circumstances of each individual case, which must be considered in the context of "a 'nuts and bolts' management decision as to which court, in the pursuit of the interests of justice, is the more appropriate to hear and determine the substantive dispute."